Send buyers a preliminary cost estimate before shipment or delivery — without it being mistaken for a payment demand.
| Description | Qty | Unit Price | Total | |
|---|---|---|---|---|
| $2500.00 | ||||
| $180.00 |
| Description | Qty | Unit Price | Total |
|---|---|---|---|
| Custom Order Deposit Estimate — Product Line A | 1 | $2500.00 | $2500.00 |
| Estimated Freight & Insurance | 1 | $180.00 | $180.00 |
Payment is due within 14 days. Thank you for your business.
A proforma invoice is a good-faith estimate, not a bill — it tells a prospective buyer what an order will cost before you've shipped anything or finished the work, which is exactly what they need to apply for an import license, open a letter of credit, or get internal budget approval. Because it isn't a demand for payment, a proforma invoice should never be entered into your accounting records as revenue, and it's worth labeling it clearly as "Proforma" so it can't be confused with your final invoice once the order is fulfilled.
They can send payment against it, but you should still issue a final (standard or commercial) invoice once the order ships or completes, since the proforma is only an estimate and not your official accounting record.
Buyers often need one to secure financing, apply for an import permit, open a letter of credit with their bank, or get internal purchase approval before a vendor begins work or ships goods.
It should be close, but minor differences are expected if final quantities, shipping costs, or exchange rates shift between the estimate and the actual order — just make sure major discrepancies are explained to the buyer.
No — it's an estimate, not a contract or demand for payment, though the underlying sale may still be governed by a separate purchase order or agreement between you and the buyer.